Fuel Prices Drop by Rs 2 with Excise Duty Cut

October 4 brought a bit of relief to every automobile user in India. Prices of petrol and diesel saw INR 2.5 and INR 2.3 worth of dip in the national capital. These were on a consistent rise from last 70 days and that too is small margins of 5-10 paise every day.

The government of India approved dynamic changes in fuel prices from June 16 and that resulted in an all-new crisis among commuters. This will led to INR 26,000 Crore of revenue loss to the government, which will roughly account to INR 13,000 for the current fiscal.

Before this type of price change, oil companies would pass on the benefits/losses of international fuel prices every fortnight. Surprisingly, petrol and diesel were kept away from the radar of GST and thus, a huge amount of VAT and excise duty piles up on both the fossil fuels.

Now! Petrol and diesel come under GST?